Post Office RD: If we talk about government savings schemes, Post Office’s Small Savings Schemes are excellent among them. You can invest in post office schemes for long term without risk and guaranteed returns.
These are better options for investors who have the ability to take risk. The government has released the interest rates for Post Office Small Savings Schemes for the October-December 2023 quarter. In this, the interest rates of Post Office Recurring Deposit (Post Office RD) have been increased by 20 basis points.
Post Office RD: New higher rates from October 1
According to the notification issued by the Finance Ministry, the interest rates on Post Office Recurring Deposit (Post Office RD) have been increased by 20 basis points. From October 1, 2023 to December 31, 2023, the 5-year post office RD will now get 6.7 percent annual interest instead of 6.5 percent. In this, compounding of interest is done on quarterly basis.
Post Office RD: ₹5000 monthly investment, ₹8.50 lakh in 10 years
A minimum of Rs 100 can be invested monthly in Post Office Recurring Deposit (PORD). There is no maximum limit for investment. You can invest as much as you want in multiples of Rs 10.
If you are investing Rs 5,000 monthly in Post Office RD, then after 5 years you will get Rs 3,56,830 on maturity. Your total investment in this will be Rs 3 lakh and you will get guaranteed interest of Rs 56,830. PORD account can be extended for next 5 years after maturity of 5 years. In this way, if you maintain your RD for 10 years, your total guaranteed fund will be Rs 8,54,272. In this, there will be a guaranteed income of Rs 2,54,272 from interest.
There is no risk in the recurring deposit scheme of the post office. Post office small savings schemes have sovereign guarantee. This is because this money is used directly by the government. Therefore, the investor’s money remains completely safe in these schemes.
Post Office RD: Pre-mature closure facility after 3 years
RD account can be opened in any post office branch for Rs 100. In this, a person can open any number of accounts. In this, apart from single, joint account can be opened for up to 3 persons. Guardian account can be opened for minors. The maturity of post office RD account is 5 years. But, pre-mature closure can be done after 3 years.
Loan can also be taken against RD account in post office. The rule is that after depositing 12 installments, a loan can be taken up to 50 percent of the amount deposited in the account. The loan can be repaid in lump sum or in installments. The interest rate on the loan will be 2 percent more than the interest on RD. It also has the facility of nomination.
